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| Discuss Effects of not keeping a Stop Loss at the Risk & Money Management within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Originally Posted by beginner_av without taking away anything from your brilliant work, sometimes the simple ... |
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#91
12th October 2007, 08:40 PM
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Re: Effects of not keeping a Stop Loss
Quote:
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#92
14th October 2007, 05:37 PM
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Re: Effects of not keeping a Stop Loss
Quote:
Just one thing, people telll me that I ask more questions than I give answers though 
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#94
23rd October 2007, 05:00 PM
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Re: Effects of not keeping a Stop Loss
Quote:
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#96
31st October 2007, 01:34 PM
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Re: Effects of not keeping a Stop Loss
Use technical analysis (whatever strategy you follow) for a stop. The idea being an arbitrary fixed percentage may not be applicable to all scrips and all times (volatility changes). In addition, money management can also be used.
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#97
20th December 2007, 06:51 PM
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Re: Effects of not keeping a Stop Loss
For an effective stop-loss, one should first calculate volatility of stock. If a stock is very volatile, then a standard 1-2% stop might not work. Then reduce position and then keep a reasonable stop to ensure that your position pays off.
If a stock is less volatile then one can keep a strict stop-loss.
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#98
20th December 2007, 11:11 PM
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Re: Effects of not keeping a Stop Loss
Quote:
The data for Reliance : Beta 1.08, r- squared ( co-efficient of determination) 0.71, and average daily volatility 2.00 Given this, how can one put stops on Reliance on intraday trades ? ss
Last edited by Linus; 20th December 2007 at 11:12 PM. Reason: average
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#99
21st December 2007, 07:59 AM
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Re: Effects of not keeping a Stop Loss
Another newbie thread with lots of newbie nuggets.It is hard to find a country gentleman who wants to distinguish himself from other hare-catchers without a Elder on his fireplace
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#100
6th January 2008, 11:56 AM
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Re: Effects of not keeping a Stop Loss
some simple rules for stop loss
1. After buying a stock keep a stop loss of 5-7% for the day. If the stock drops more than 7% , you must assume that something is wrong with the stock. If 5% is too much for you, you can place a stop a immediate support.If the stock has support at 100, keep a SL < 100 (say 99.50) as the stock might test the support for a breif period and bounce back. 2. If the stock move above your buy say 5-10% , you can place SL just above 3% or so , so that you can get some profit if the stock reverses. 3. If the stock moves >20% , you can place +10% SL or take some profit. 4.Never modify SL if the price falls below 7% from your buy. The purpose of SL is defeated. 5.If you are away from terminal for long time , it is always better to keep SL . SL can protect you from system crash, unavailibilty. It is my experience 6.Never work without SL in options ! For options the tolerance may be 15-20% . You need to count the spread. Also the difference between trigger and limit must be more that spread. 7.Beware, first and last 30 are usually when SL gets triggered. Try to place SL after 10.30 and remove @3.00 if you are in comfort zone ! Experts please correct me if something is wrong
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